HETEROGENEOUS LOGIT MODEL IMPLICATIONS FOR BRAND POSITIONING

The author discusses the implications of a heterogeneous logit model f or brand positioning. The methodology presented is a restricted versio n of a mixture-of-logits model and obtains brand positions on a produc t-market map and the distribution of preferences across households whi le accounting for the effects of marketing variables on household bran d choice behavior. The restriction involves imposing a factor structur e on the covariance matrix of the distribution of intrinsic brand pref erences. An empirical application of the methodology is presented usin g A.C. Nielsen household-level scanner panel data on the purchases of liquid laundry detergents. The results indicate that the proposed mode l provides a better fit to the data than the unrestricted mixture-of-l ogits model or the Choice Map methodology.